The "WORTHLESS" U.S. dollar posted by Leonard Family

[CSJournals-migration]

Is silver and gold really worth more?

 

I've read alot of journals lately by bullion holders who are getting all giddy about the prices of silver and gold going up, and up. It got me thinking about a few things. How much did a loaf of bread and a gallon of gas cost back in the early thirties? Well, they're both closing in on $4 now. Maybe gold and silver isn't worth more, but the U.S. paper dollar is worth a whole bunch less than it used to be. Back in 1932 you could trade a paper dollar for a silver dollar, and a $20 bill for a $20 gold coin. Our money was made of precious metal, and the only reason we had paper money was so we didn't have to lug around a bunch of weight. Now it takes $1500 U.S. paper dollars to obtain an ounce of gold and more than $40 for an ouce of silver. If the price of silver gets up to $1,000,000 per ounce, would you really consider trading an ounce for a million worthless pieces of paper that won't buy you a decent lunch? I wouldn't.

 

See more journals by Leonard Family

[pnunemacher-migration]

An interesting question. I used the calculator at this site.

 

SGS Inflation Calculator

 

$1 in March 1932 was worth $15.96, according to the Bureau of Labor Statistics, CPI-U (Urban Workers, All Items), in March 2011. And about $64 using the stats calculated according to the site statistics (old government method from the early 1980s). You can't get an exact figure unless you're a paid member, but the graph gives roughly four times the BLS figure.

 

Silver closed today at almost $44/oz. or about $20 below this sites figure of where it should be just to keep up with inflation.

 

As to the philosophical portion of the question, that all depends upon your personal world view.

 

 

[Mokiechan]

Ultimately you can't eat the metal or the paper so your best bet in the future land of Mad Maxian America is to invest in a Glock, a Remington, and a Shakespeare. That way you can protect your home, shoot game, and fish. Get yourself a good field guide for edible

plants as well.

[Rooster-migration]

I don't believe the old silver certificates could be converted to a silver dollar or 20$ gold coin but rather to that dollar amount of silver or 20$ worth of gold.... So the inflation was still within the paper money backed by metals.... ie you would get less gold today if you turned in a 20$ gold certificate than in 1932.